Operation Management : Process Design Essay

3834 words - 16 pages

Operation Management : Process Design

1. Abstract

This paper is to analysis STATS CHIPPAC Process Design and critical access the company practice against literature theory. Alternative approaches might lead to improvements in the performance of the organisation are also discuss in this paper.

2. Introduction
Process design is the method by which an organization understands and defines the operation activities that enable it to function. Process designs is concerned with designing an operation processes to ensure that they are optimized, effective, meet customer requirements, support and sustain organizational development and growth. A well-designed process will improve efficiency ...view middle of the document...

, together in close proximity (a cell)

Product Layout
Locating transforming resources in a sequence defined by the processing needs of a product or service.

Selecting type of layout:
Slack (2007) argued that layout is influenced by process type and it is the volume-variety characteristics of operation which dictate its process type. (refer to matrix below)

According to S N Chary (1995), one of the main considerations in laying out work-areas is the ease in the flow of work. The flow of work may take place through the movement of material

R.Panneerselvam (2006) argued that layout design process considers mostly a single objective while designing layouts.
1) In Process Layout, the objective is to minimize the total cost of materials handling. Because of the layout, the cost of equipment will be minimum in this type of layout.
2) In Product Layout, the cost of materials handling will be at absolute minimum. But the cost of equipments would not be at the minimum if the equipments are not fully utilized.
3) In Cell Layout, the objective is to minimize the sum of the cost of transportation and the cost of equipment.
4) In Layout by Fixed Position, in which the physical characteristics of the product dictate as to which type of machines and men are to be brought to the product.
In practice, there are more considerations besides main factor that mention above. For example, safety issue and quality level required will always need to be included in layout decisions. Layout can affect quality. If materials or information or customers are continually being passed from one part of the operation to another, there will be many points at which damage (or annoyance) can occur. But often these are brought into the decision making process after an initial layout has been suggested. This suggested layout is then modified to ensure full compliance with safety considerations.

B) Process Technology
For most operations, process technology is becoming even more important. Operation managers are continually involved in the management of process technology.
Process technology is a key part of the firm’s innovation capability. It enables the firm to provide a range of models and variations that modern business markets demand. (Brown 2001)

Three core component in process technology (Slack,2007):
1. Materials-processing technology
2. Information-processing technology
3. Customer processing technologies

1. Materials processing technologies
Technological advances have meant that the ways in which material are processed have improved over time. Materials processing technologies are not only refer to the manufacturing technologies.

2. Customer processing technologies
Customer processing technologies are becoming increasingly important. The main one is that many customer processing technologies require the customer to operate the technology. Customers unfortunately are not always skilled in doing this. Thus the...

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